Business owners often take pride in their business, and in many cases, their business is their most valuable asset, and if you are a business owner who is currently getting divorced, you are most likely very worried about the future of your business. Continue reading and speak with our California divorce attorneys to learn more about what may happen to your business if you get divorced and how our firm can help. Here are some of the questions you may have:
Is my spouse entitled to a portion of my business if we get divorced?
Unfortunately, in many cases, if you get divorced and you are a business owner, there is a very good chance that your spouse will actually be entitled to a portion of your business via the process known as equitable distribution. In most cases, unless addressed in a marital agreement, businesses are considered marital property, and are, therefore, subject to equitable distribution. In fact, even if your spouse never contributed to your business, though he or she contributed to your marriage either financially or non-monetarily, such as by raising children, taking care of chores around the house, and more, there is a very good chance he or she will be entitled to a portion of your business.
How are businesses valued when it comes to divorce?
Businesses are often complex assets, and for them to be properly valued so they can be distributed equitably, outside parties will often come into the equation, such as forensic accountants, financial analysts, and more. For this reason, it is critical that you fully disclose all information pertaining to your business. If you fail to do so, whether intentionally or by mistake, the IRS may get involved, which almost always leads to further legal and financial issues. Our firm can help ensure you accurately and fully disclose all this information to avoid such an incident from occurring.
What is a shareholder agreement?
Fortunately, there are various ways to protect your business from the pitfalls of a divorce. For example, if you and your spouse own a business together, you may draft a document known as a shareholder agreement, which can essentially outline both of your interests in your business, should you ever get divorced. Further, if you are not yet married and own a business, a prenuptial agreement can state what will happen to your business, should you get divorced in the future. A postnuptial agreement can serve the same purpose, though those agreements are exclusively drafted after marriage.
Contact our experienced Los Angeles firm
Divorce and family law issues are notoriously complicated and personal, which is why you must hire an attorney with years of experience, as well as the compassion and skill needed to handle these sensitive matters. For the qualified, dedicated legal representation you and your family deserve and need, contact Zitser Family Law Group, APC today.